Test your knowledge about discount & allowance types in real‑world marketing situations. Each question sharpens your grasp of how the 7Ps translate into daily decisions.
A cash discount offered to buyers who pay within 10 days is a ______ discount.
prompt payment
seasonal
cumulative quantity
trade
Prompt‑payment discounts reward early settlements and improve cash flow. They typically appear as terms like “2/10, net 30.”
Offering retailers a fee to secure shelf space for a new SKU is called a ______ allowance.
rebate
slotting
freight
advertising
Slotting allowances compensate stores for the risk and opportunity cost of stocking new items. They are common in packaged‑goods categories.
Quantity discounts that grow with the volume bought over a time period are known as ______ quantity discounts.
non‑cumulative
functional
seasonal
cumulative
Cumulative quantity deals encourage repeat purchasing across orders rather than a single large buy. They deepen channel loyalty.
Price reductions to channel partners for conducting local ads are called ______ allowances.
cash
slotting
advertising
rebate
Advertising (co‑op) allowances share promotional costs with resellers. They ensure brand‑consistent messaging while boosting reach.
A discount expressed as “list less 40/10/5” illustrates a ______ discount structure.
trade series
seasonal
cash
prompt payment
Series trade discounts cascade multiple reductions, reflecting different intermediary margins. They are common in B2B price lists.
Freight absorption strategies that reduce delivered price inequities mimic a ______ allowance.
advertising
cumulative
slotting
FOB equalisation
FOB equalisation allowances reimburse distant buyers part of shipping, creating a uniform delivered cost across zones.
Refunds sent to end‑users after purchase submission are known as ______.
broker allowance
seasonal discount
cash discount
mail‑in rebates
Rebates shift discount redemption to the consumer post‑sale, lowering perceived list erosion while driving demand spikes.
Temporary price reductions used to clear end‑of‑season inventory are ______ discounts.
promotional allowance
trade
seasonal
cumulative
Seasonal discounts smooth production by incentivising purchases in off‑peak periods. They are common in apparel and agriculture.
An extra case of product given free after ordering a certain quantity is termed a ______.
slotting allowance
prompt payment discount
cash refund
bonus pack
Bonus‑in‑kind discounts preserve invoice price but raise effective quantity, appealing to resellers seeking margin.
Lower rates granted to intermediaries who perform warehousing are called ______ discounts.
seasonal
functional (trade)
cash
rebate
Functional discounts pay intermediaries for specific services like storage or assemblage, aligning compensation with value added.
Starter
Brush up on the basics before moving on.
Solid
Good grasp—refine the finer points to level up.
Expert!
Outstanding mastery—share your insights with the team.
